Elon Musk's $1 Trillion Pay Package Approved by Tesla Shareholders

Tesla shareholders have approved a historic pay package for CEO Elon Musk, potentially worth up to $1 trillion over a decade. This decision, announced at the annual shareholder event in Austin, Texas, was supported by over 75% of investors, despite criticisms from several high-profile stakeholders including Norway's sovereign wealth fund and investment advisory firms like Glass Lewis and ISS, who recommended voting against it.

The package is one of the largest in corporate history and would award Musk with the world's first trillionaire status if he meets specific performance goals, which include reaching an $8.5 trillion market capitalization, delivering 20 million vehicles, and producing 1 million humanoid robots.

The plan requires Musk to be vested in Tesla for at least seven and a half years and to help develop a long-term succession plan for the company he has led for over two decades. Critics argue that this massive compensation package centralizes power in one individual and could overlook significant challenges facing Tesla, such as declining sales and safety concerns.

The new pay structure comes in the wake of a rescinded package from 2018, which was invalidated by a Delaware court, leading to Musk relocating Tesla's headquarters to Texas. This new approval, however, has reignited discussions about corporate governance and the implications of such high executive compensation on shareholder interests.

As Tesla continues to navigate market pressures and Musk's controversial leadership, the implications of this pay package will be closely monitored by investors and industry analysts alike.